Here’s some interesting information for anyone interested.
There will be an auction at the old and soon to be vacated Model Die Casting facility in Carson City on Sunday, August 29th at 10:00 A.M.
5070 Sigstrom Drive
Carson City, NV 89706-2406
Items being sold include molding machines, pad printing machines, paint booths, mills, lathes, shelving, office furniture, and various other machines and equipment.
THERE WILL BE NO FINISHED GOODS OR PARTS.
For additional information contact: Arundel Auction at 775-883-0808
Well, there you have it. I don’t know. Perhaps the MDC line products were just absorbed into Athearn, OR are they tooling a new line of RTR? Any of you know or have any ideas? [%-)]
It’s tempting to blame Horizon, but then again with the arrival of RTR cars and companies like InterMountain and Atlas offering highly detailed cars, it stands to reason that both MDC and Athearn Blue Box sales have dropped in the past few years… [8)]
They are probably just selling off the duplicate equipment. The molds have most likely already been shipped to China, where they have all of this stuff in place. They can still produce both lines of products using the same machines. All they are doing is consolidating two similar businesses into one. This has nothing to do with sales.
“China”? I thought that Athearn and MDC “BlueBox” type cars were going to continue to be “Made in the USA” and that onlly the RTR items were coming from China. This was according to Horizon’s statement when Athearn was bought out.
Then again, this isn’t surprising, though, as the writing as been on the wall for a while.
Even if they continue producing kits in the US, the two companies have similar machines. However, if they sell off production equipment, this necessarily means the production capacities of the two companies, can not be maintained, unless the one company purchases newer machines which have higher production capibilities. These are business decisions and likely have little to do with buying blue boxes or products availablity. Things will change! Are you ready to buy your blue boxes with Walmart Smily faces on them [:)]
When we were out in CA last December to see the kids we took a tour of Athearn. The only machine that they were running was the one that put wheels on axles. All of their extrusion machines had heavy tarps over them because they weren’t doing extrusions anymore. When I ask the guide where it was being done he said that he didn’t know, he only knew “off property”. I figured Mexico. All of the Genesis line comes in complete and is not touched by anyone on this side of the Pacific ocean until it gets to the store owners hands.
Have a blessed day and remember SANTA FE ALL THE WAY
Bob
China was only an educated guess guys. I have no actual information one way or the other. Bob’s (Teffy’s) comments seem to support the off shore theory though. All of the 3 rail O gauge manufacturers packed up and moved production years ago. Cheap labor seems to be too hard to resist.
I used to visit several companies in the LA area and most used Mexican labor particularly for repetitive jobs. Yearly shut downs resulted in nearly 100% turn over. Those that cry about non-US jobs need to think about the type work being performed for one. Dumping parts in a box isn’t exactly state of the art cutting edge employment. There also the environmental and disposal costs to think of as well as the huge deficit Grayout Davis ran up in California with his shrewd energy negotiating skills. I’d be getting out of California also if I had a business there that could move elsewhere.
If we really stop and think about this, China is almost exactly one century behind the US in most things. Wages, working conditions, environmental issues, are all straight out of the early 20th century. They have a few bits of technology, because they begged borrowed or stole them from the west. The real irony is that China was once the world’s technological leader. They shared their knowledge with the west 400 years ago, and look what happened. Have we come half circle?? A truely scary thought!!!
Shucks.
I thought there could be a sale on MDC cars/locos. Especially the Nscale lines. Sell it or move it. The Overlands/Overtons would be just great behind the little Atlas Mogul. With the demise of ConCor/Rivarossi there will be a big need for N scale heavyweight passenger equipment. Can ModelPower or Bachmann come to the rescue?? They all need something for the new Nscale steamers to pull!
I JUST LOVE THE OLDER ATHEARN LINE OF LOCOS. ON MY HO SCALE EASTERN RR. I HAVE 7 F7’S, 3 PA1’S AND 2 GP9’S. ALONG WITH 2 PROTO 2000 E8’S. ARE THE NEW LINE COMING FROM CHINA LIKE ALOT OF OTHERS
I guess it’s safe to say that Mexican labor is no longer the cheapest around. It may depend on how much it costs to ship what is being manufactured. Small items like model trains travel well by sea.[:(]
Well. China has very many people and they can make a widget for 10 cents. America needs 1.50 plus expenses per worker to make the same widget.
Alot of things changed in the past 12 years. National Intermodal Capability, Internet use by businesses and cutting costs by either doing it in house or having a overseas firm make it for you. The increase in shipping into all of our ports as well as air freight. Everything moves faster and cheaper.
America will always have fast food, gas station, service and retail jobs everything else seems fair game to be looked at via a excel spreadsheet to cut costs.
Eventually peoples of the far east where the cheap labor is will acquire skills and demand a higher standard of living. Once this occurs they then will have the power to have products cost more while all of our “Irreplaceable” tooling is over there. We will find ourselves in a position to have to start all over again or be left behind.
I choose to enjoy the hobby by acquiring r/h or athearn kits where I can find them. I think that Horizion will continue to make these items availiable in RTR. I suspect dealers are fighting to get large shipments of kits and blue boxes out of the system as fast as possible so they can have some stock on hand.
There is also a new danger that I must express. This is a trend towards direct marketing to the hobbist via the internet IF this proves profitable then manufactors may sell directly to the model railroader and cut out the hobby shop dealer in a effort to cut prices.
I recently acquired some computer parts for my ailing system sight unseen across the internet and had em delivered within days in mint and perfect condition. If I had to drive to the store to get these same parts prices would be higher. And there is the sales tax. I did not in my state have to pay any tax so I save a large amount of money on internet purchases.
Ebay will probably be close to number one for out of production items for
[quote]
QUOTE: Originally posted by HighIron2003ar
Well. China has very many people and they can make a widget for 10 cents. America needs 1.50 plus expenses per worker to make the same widget.
Alot of things changed in the past 12 years. National Intermodal Capability, Internet use by businesses and cutting costs by either doing it in house or having a overseas firm make it for you. The increase in shipping into all of our ports as well as air freight. Everything moves faster and cheaper.
America will always have fast food, gas station, service and retail jobs everything else seems fair game to be looked at via a excel spreadsheet to cut costs.
Eventually peoples of the far east where the cheap labor is will acquire skills and demand a higher standard of living. Once this occurs they then will have the power to have products cost more while all of our “Irreplaceable” tooling is over there. We will find ourselves in a position to have to start all over again or be left behind.
I choose to enjoy the hobby by acquiring r/h or athearn kits where I can find them. I think that Horizion will continue to make these items availiable in RTR. I suspect dealers are fighting to get large shipments of kits and blue boxes out of the system as fast as possible so they can have some stock on hand.
There is also a new danger that I must express. This is a trend towards direct marketing to the hobbist via the internet IF this proves profitable then manufactors may sell directly to the model railroader and cut out the hobby shop dealer in a effort to cut prices.
I recently acquired some computer parts for my ailing system sight unseen across the internet and had em delivered within days in mint and perfect condition. If I had to drive to the store to get these same parts prices would be higher. And there is the sales tax. I did not in my state have to pay any tax so I save a large amount of money on internet purchases.
Guys,From what I been seeing locally for the last 6 months Athearn products still seem to be in high demand…I know of one shop that received a large order of Athearn Blue Box engines and cars and sold out in less then 3 weeks.
The RTR engines and cars seem to be selling quite nicely as well…So,I don’t believe we will see the passing of the Blue Box…I thought the blue box would become history but now I m not so sure base on what I been seeing and hearing.This is of course good news as it means the hobby will stay affordable for those that are starting the hobby and for those that are on a limited budget.
While I have Atlas,P2K,Stewart and 3 Walthers GP15-1s I still prefer my old and well worn in Athearn SW1500 to switch cars with.[:D]
It may just be the uncertainty causing a slight panic, look at the price of oil. Has Horizon produced any models since the buyout, or they just shipping from old stock?
I would doubt that they would dump the blue box, that has been an industry standard for 30+? years. I’m not sure where anyone got the idea that blue boxes would end. Heck they may not even change the box, because it is so well known. How they are marketed may be what changes. I sincerely believe that the products are safe. Ditto for Roundhouse.
Things with Athearn today do not surprise me a bit.I "use to " be a heavy purchaser of Athearn and other model manufacturers products.But now since they are all RTR,nope.I am done with model railroading,unless they decide to bring back kits,the way Irv Athearn WANTED it to be. But I doubt it will ever happen,so I’m enjoying reading books about the railroads,and I am finding this to be more interesting than I thought it would be.You would be surprised as to what the different railroads had to have and what they operated,and hauled to various industries. Even the maps in the books are excellent.